cover Feature www.thedesignermagazine.com 17
“Design can be instrumental in turning
the corner to reneweD growth”
nowaDays,
many businesses are so
focused on cutting costs
HMV USES
– especially ‘discretionary’ budgets allocated to activities such as
design – that they have forgotten important lessons from previous
DESIGN TO
downturns.
GET ON THE
one of these is that recession is no time to be battening
RIGHT TRACK
down the hatches. on the contrary, it’s the moment when design
becomes absolutely critical to survival, growth and success.
experience has taught companies that have survived (and
even thrived) in a downturn that investing in design and
innovation when times are tough can give a vital competitive
edge over rivals who are reigning in their marketing and
innovation spend.
it’s great to see that there’s a growing recognition of this
within the business community.
over the past few months, the Design council has talked
to 1,500 uK firms, from smes to large organisations in a whole Many commentators and analysts
variety of sectors, and the message is clear: more than half of have already called time on high street
those companies said that they intend to use design to a greater music and video retailers, sounding the
or lesser extent to help maintain their competitive edge to survive huge and swift emergence of digital
recession. file formats and Internet distribution
what’s more, the same proportion also thinks that design as the death knell. For some, HMV has
has become more critical in helping them achieve their business become something of a bellwether for
objectives. this is in part because firms are realising that design the fortunes of the whole sector. With a
isn’t just about creating new products – design can be used in so long history of innovation in the music
many ways to transform business competitiveness, from reducing retail market, HMV has developed from
costs and exploiting new markets to transforming your branding its original Oxford Street store, which
and customer service offering. and it’s never been more important opened in 1921, to become a leading
to put your customers’ needs at the heart of your business, music retailer with 265 stores in the UK
and make sure that service, brand and customer-engagement and a further 129 outlets internationally.
strategies are continually reviewed.
But the last few years have been a
take luxury online retailer net-a-Porter, launched in the
turbulent period. According to market
middle of the dot-com bust in 2000. the company started off
research company Mintel, high street
fighting tough market conditions that finished many other online
sales of pre-recorded music have fallen
businesses, but by focusing on design and innovation in brand,
by 14 per cent between 2002 and 2007.
user experience and service design, it has grown into a household
Similarly, Verdict Research says that last
name among fashionistas, turning over £55 million a year.
year the market shrank for the third
net-a-Porter hasn’t just provided a glamorous website; it’s
consecutive year, dropping by 2.9 per
worked to ensure that every aspect of its offering distinguishes
cent to £4 billion. At the same time,
its brand from other luxury retailers, both online and offline.
downloads are rocketing. Verdict ➔
From the elegantly turned-out delivery drivers in its key london ➔
design in a downturn.indd 17 2/3/09 11:53:10
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